The History of England, from the Accession of James the Second - Volume 4, Thomas Babington Macaulay [early readers .txt] 📗

had undoubtedly, by the ancient laws of the realm, large powers for the regulation of trade; but the ablest judge would have found it difficult to say what was the precise extent of those powers. It was universally acknowledged that it belonged to the King to prescribe weights and measures, and to coin money; that no fair or market could be held without authority from him; that no ship could unload in any bay or estuary which he had not declared to be a port. In addition to his undoubted right to grant special commercial privileges to particular places, he long claimed a right to grant special commercial privileges to particular societies and to particular individuals; and our ancestors, as usual, did not think it worth their while to dispute this claim, till it produced serious inconvenience. At length, in the reign of Elizabeth, the power of creating monopolies began to be grossly abused; and, as soon as it began to be grossly abused, it began to be questioned. The Queen wisely declined a conflict with a House of Commons backed by the whole nation. She frankly acknowledged that there was reason for complaint; she cancelled the patents which had excited the public clamours; and her people, delighted by this concession, and by the gracious manner in which it had been made, did not require from her an express renunciation of the disputed prerogative.

The discontents which her wisdom had appeased were revived by the dishonest and pusillanimous policy which her successor called Kingcraft. He readily granted oppressive patents of monopoly. When he needed the help of his Parliament, he as readily annulled them. As soon as the Parliament had ceased to sit, his Great Seal was put to instruments more odious than those which he had recently cancelled. At length that excellent House of Commons which met in 1623 determined to apply a strong remedy to the evil. The King was forced to give his assent to a law which declared monopolies established by royal authority to be null and void. Some exceptions, however, were made, and, unfortunately, were not very clearly defined. It was especially provided that every Society of Merchants which had been instituted for the purpose of carrying on any trade should retain all its legal privileges.153 The question whether a monopoly granted by the Crown to such a company were or were not a legal privilege was left unsettled, and continued to exercise, during many years, the ingenuity of lawyers.154 The nation, however, relieved at once from a multitude of impositions and vexations which were painfully felt every day at every fireside, was in no humour to dispute the validity of the charters under which a few companies to London traded with distant parts of the world.

Of these companies by far the most important was that which had been, on the last day of the sixteenth century, incorporated by Queen Elizabeth under the name of the Governor and Company of Merchants of London trading to the East Indies. When this celebrated body began to exist, the Mogul monarchy was at the zenith of power and glory. Akbar, the ablest and best of the princes of the House of Tamerlane, had just been borne, full of years and honours, to a mausoleum surpassing in magnificence any that Europe could show. He had bequeathed to his posterity an empire containing more than twenty times the population and yielding more than twenty times the revenue of the England which, under our great Queen, held a foremost place among European powers. It is curious and interesting to consider how little the two countries, destined to be one day so closely connected, were then known to each other. The most enlightened Englishmen looked on India with ignorant admiration. The most enlightened natives of India were scarcely aware that England existed. Our ancestors had a dim notion of endless bazaars, swarming with buyers and sellers, and blazing with cloth of gold, with variegated silks and with precious stones; of treasuries where diamonds were piled in heaps and sequins in mountains; of palaces, compared with which Whitehall and Hampton Court were hovels; of armies ten times as numerous as that which they had seen assembled at Tilbury to repel the Armada. On the other hand, it was probably not known to one of the statesmen in the Durbar of Agra that there was near the setting sun a great city of infidels, called London, where a woman reigned, and that she had given to an association of Frank merchants the exclusive privilege of freighting ships from her dominions to the Indian seas. That this association would one day rule all India, from the ocean to the everlasting snow, would reduce to profound obedience great provinces which had never submitted to Akbar's authority, would send Lieutenant Governors to preside in his capital, and would dole out a monthly pension to his heir, would have seemed to the wisest of European or of Oriental politicians as impossible as that inhabitants of our globe should found an empire in Venus or Jupiter.

Three generations passed away; and still nothing indicated that the East India Company would ever become a great Asiatic potentate. The Mogul empire, though undermined by internal causes of decay, and tottering to its fall, still presented to distant nations the appearance of undiminished prosperity and vigour. Aurengzebe, who, in the same month in which Oliver Cromwell died, assumed the magnificent title of Conqueror of the World, continued to reign till Anne had been long on the English throne. He was the sovereign of a larger territory than had obeyed any of his predecessors. His name was great in the farthest regions of the West. Here he had been made by Dryden the hero of a tragedy which would alone suffice to show how little the English of that age knew about the vast empire which their grandchildren were to conquer and to govern. The poet's Mussulman princes make love in the style of Amadis, preach about the death of Socrates, and embellish their discourse with allusions to the mythological stories of Ovid. The Brahminical metempyschosis is represented as an article of the Mussulman creed; and the Mussulman Sultanas burn themselves with their husbands after the Brahminical fashion. This drama, once rapturously applauded by crowded theatres, and known by heart to fine gentlemen and fine ladies, is now forgotten. But one noble passage still lives, and is repeated by thousands who know not whence it comes.155

Though nothing yet indicated the high political destiny of the East India Company, that body had a great sway in the City of London. The offices, which stood on a very small part of the ground which the present offices cover, had escaped the ravages of the fire. The India House of those days was a building of timber and plaster, rich with the quaint carving and lattice-work of the Elizabethan age. Above the windows was a painting which represented a fleet of merchantmen tossing on the waves. The whole edifice was surmounted by a colossal wooden seaman, who, from between two dolphins, looked down on the crowds of Leadenhall Street.156 In this abode, narrow and humble indeed when compared with the vast labyrinth of passages and chambers which now bears the same name, the Company enjoyed, during the greater part of the reign of Charles the Second, a prosperity to which the history of trade scarcely furnishes any parallel, and which excited the wonder, the cupidity and the envious animosity of the whole capital. Wealth and luxury were then rapidly increasing. The taste for the spices, the tissues and the jewels of the East became stronger day by day. Tea, which, at the time when Monk brought the army of Scotland to London, had been handed round to be stared at and just touched with the lips, as a great rarity from China, was, eight years later, a regular article of import, and was soon consumed in such quantities that financiers began to consider it as a fit subject for taxation. The progress which was making in the art of war had created an unprecedented demand for the ingredients of which gunpowder is compounded. It was calculated that all Europe would hardly produce in a year saltpetre enough for the siege of one town fortified on the principles of Vauban.157 But for the supplies from India, it was said, the English government would be unable to equip a fleet without digging up the cellars of London in order to collect the nitrous particles from the walls.158 Before the Restoration scarcely one ship from the Thames had ever visited the Delta of the Ganges. But, during the twenty-three years which followed the Restoration, the value of the annual imports from that rich and populous district increased from eight thousand pounds to three hundred thousand.

The gains of the body which had the exclusive possession of this fast growing trade were almost incredible. The capital which had been actually paid up did not exceed three hundred and seventy thousand pounds; but the Company could, without difficulty, borrow money at six per cent., and the borrowed money, thrown into the trade, produced, it was rumoured, thirty per cent. The profits were such that, in 1676, every proprietor received as a bonus a quantity of stock equal to that which he held. On the capital, thus doubled, were paid, during five years, dividends amounting on an average to twenty per cent. annually. There had been a time when a hundred pounds of the stock could be purchased for sixty. Even in 1664 the price in the market was only seventy. But in 1677 the price had risen to two hundred and forty-five; in 1681 it was three hundred; it subsequently rose to three hundred and sixty; and it is said that some sales were effected at five hundred.159

The enormous gains of the Indian trade might perhaps have excited little murmuring if they had been distributed among numerous proprietors. But while the value of the stock went on increasing, the number of stockholders went on diminishing. At the time when the prosperity of the Company reached the highest point, the management was entirely in the hands of a few merchants of enormous wealth. A proprietor then had a vote for every five hundred pounds of stock that stood in his name. It is asserted in the pamphlets of that age that five persons had a sixth part, and fourteen persons a third part of the votes.160 More than one fortunate speculator was said to derive an annual income of ten thousand pounds from the monopoly; and one great man was pointed out on the Royal Exchange as having, by judicious or lucky purchases of stock, created in no long time an estate of twenty thousand a year. This commercial grandee, who in wealth and in the influence which attends wealth vied with the greatest nobles of his time, was Sir Josiah Child. There were those who still remembered him an apprentice, sweeping one of the counting houses of the City. But from a humble position his abilities had raised him rapidly to opulence, power and fame. At the time of the Restoration he was highly considered in the mercantile world. Soon after that event he published his thoughts on the philosophy of trade. His speculations were not always sound; but they were the speculations of an ingenious and reflecting man. Into whatever errors he may occasionally have fallen as a theorist, it is certain that, as a practical man of business, he had few equals. Almost as soon as he became a member of the committee which directed the affairs of the Company, his ascendency was felt. Soon many of the most important posts, both in Leadenhall Street and in the factories of Bombay and Bengal, were filled by his kinsmen and creatures. His riches, though expended with ostentatious profusion, continued to increase